The transition of TwoTwenty, along with its holding company Elephant Holdings, to a business that is 100% employee-owned is believed to be the first such deal in the UK timber engineering sector.
Derbyshire-based staircase manufacturer TwoTwenty has announced its sale to an employee ownership trust.
The transition of TwoTwenty, along with its holding company Elephant Holdings, to a business that is 100% employee-owned is believed to be the first such deal in the UK timber engineering sector and secures the jobs of 40 staff.
TwoTwenty was incorporated in May 2005 and has a purpose-built factory and HQ in Foston, Derbyshire and another manufacturing centre in Kirby Lonsdale, Cumbria.
The company has built an award-winning reputation in the design and manufacture of bespoke timber staircases for new build homes, conversions and renovations, selling mostly through independent and national builders’ merchants, including all of the top ten merchants in England.
No funding or contributions have been required from any employee to fund the purchase of the business by the EOT, and under the terms of the deal, all staff are expected to benefit from significant tax-free bonuses in future years as well as deciding the company’s future strategy and growth plans.
All the existing senior leadership team will remain closely involved in the business as trustee directors, including TwoTwenty’s current managing director Scott Peden, commercial director Jason Stain, Jason Ward, and Lisa Richards of Dains accountants, which has advised on the sale of the business and creation of the EOT.
Ali Wright, founder of TwoTwenty, who will also become Chair of the EOT, said: “We passionately believe that our colleagues are the thing that make TwoTwenty successful, so becoming an EOT secures the perfect future for this business.
“As a small business, in reality we only have a few options for the next phase of growth. We did not want to pursue a trade sale as that does not secure the long-term future for our staff.
"We did not want to pursue an external investor or management buy-out because of the huge pressure and obligation it brings on future performance. We could not simply share the ongoing profits of TwoTwenty with our employees as that would make us unsaleable, and I certainly couldn’t imagine exiting by just closing down such a strong and vibrant company.
“In effect, we are a family business whose employees are not related, so to create an EOT resonates with every value we have ever aspired to. It creates a legacy for us, provides security for all the staff, and allows us to handsomely reward every employee for the hard work and effort they put in.”
Within the next couple of months, a new Employee Council will be established at TwoTwenty to guide and inform trustees’ decision making. This will involve employee representatives from different parts of the business, including those on the shop floor.
Scott Peden, Managing Director at TwoTwenty, said: “I am extremely excited for the future, to move forward with the Employee Council, EOT trustees and the whole amazing team to build on the legacy founded by Ali and Steve, ensuring the TwoTwenty ethos, which has contributed to our current success, remains at the very heart of this company.
“Our colleagues will now have a true sense of ownership, creating job security and demonstrating how their daily activities make a direct impact on the business. I don’t know of any companies within our industry that have chosen this exit route, which has made us want to do it even more.”
